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The Kudlow Report

News/Business. Larry Kudlow. Larry Kudlow provides his unique perspective on business, politics and investing. New.

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America 14, Sandy 13, Wisconsin 12, New York 7, Romney 7, Michelle 6, Rudy Giuliani 6, Iowa 5, Obama 4, Ho 4, Us 4, Cuomo 3, Barack Obama 3, Fema 2, Lexus Ls 2, Kudlow 2, Scott Walker 2, Walker 2, Rasmussen 2, Kellyanne 2,
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  CNBC    The Kudlow Report    News/Business. Larry Kudlow. Larry Kudlow provides his  
   unique perspective on business, politics and investing. New.  

    November 1, 2012
    7:00 - 8:00pm EDT  

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two very big very high profile positive numbers. starbucks, that's right, star buck which is had been a downturn, some recommended selling, howard schultz saying we're back an raising 2013 numbers. charitable trust named priceline, that has been the barometer of what people like to buy in this market and it reported a blowout quarter. i think that's positive. like i said, there's always a bull market somewhere. i promise to find it just for you. i will see you tomorrow. larry, michelle, what do you have lined up? stocks didn't fear sandy. stocks up 136 points. good evening, everybody. larry kudlow with my colleague michelle caruso-cabrera. five days before the election. is new york mayor mike bloomberg using hurricane sandy to score political points by endorsing barack obama? rudy giuliani will be our special guest. >> and why are politicians brow
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beating insurance companies in to how to run their businesses? it eats an attack on free market capitalism. >> a special edition of the "kudlow report" begins right now. sandy, the road to recovery. the cost of sandy's destruction on the rise. gas lines stretch for miles. and so does the traffic jams. billions still without power. food getting scarce. nerves break. how past can we rebuild? tonight we look for answer. plus the markets rally and the reaction of a lifetime days away. this is a special edition of the "kudlow report." hurricane sandy may be over, but tonight many in the northeast remain without basic needs. power, water, gasoline, and the road to recovery looks grim.
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here's what we know right now. total losses in sandy, now estimated to be $50 a billion. that according to a disaster modeling company. ranking it second only to hurricane katrina. the death toll from hurricane sandy leaves 92 across the usa. the number of that continues to rise. search and rescue efforts continue. 4.5 million people remain without power. lower manhattan is being promised electricity by saturday. >> power outages also shut down gas stations across the northeast, frustrated drivers waiting in line for hours. minutes ago we learned amtrak is resuming service from newark to washington and area airports are almost back to normal. and between news for the 26 mile new york city marathon will proceed as planned this sunday.
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>> so welcome back, everybody. the pictures and stories left from the storm's after math are still jaw-dropjaw-dropping. let's begin with scott cohn in lower manhattan. >> larry, hurricane sandy sent about 4 feet of water in the financial district and they think it actually may be a total loss, about $300,000 worth of damage. and they don't know if insurance is going to cover it. you multiply that by thousands of businesses and you begin to get a sense of what the problem is. and then there's the issue of getting around and getting gas. mary thooyor thompson has that . >> people with been waiting in line two to three hours. there's a shortage of power to open other gasoline stations. a lack of electricity plaguing the tri-state area. >> dangerous conditions at the
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gas terminal which is crucial. workers here trying hard to clean things up, but tough to do so without power. over to jackie deangelis for more on the utility side of things. >> nearly 4.5 million customers still without power and it may be ten days before the lights go back on for many. new jersey is the hardest hit state with nearly 43% of its residents without power. for an update on airlines, let's head out to courtney reagan at laguardia. >> laguardia is the last of the three major airports to reopen after the storm. flights are coming in and going out, but still only at about 50% of normal traffic. the airlines say it's just going to take some time to get all the people and planes in the right places at the right times. >> all right. so with five days left until election day, is president obama's midwest firewall actually crumbling? the latest rasmussen poll in the critical battleground state of
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wisconsin shows a dead heat. romney, obama, tied at 49%. so joining me now for an exclusive interview is governor scott walker, republican from wisconsin. governor walker, as always, sir, welcome back to the "kudlow report." we appreciate it. they're tied at 49% which is something of a surprise. the republicans strnts taken the state of wisconsin in a presidential election since 1492. so how does it look, how do you see it right now? >> well, i was out in green bay, wisconsin nearby where the president was today. i've been all over the state the last couple days. momentum is clearly on our side. and you expect that out of somebody advocating for candidates, but i've really seen it. we made 4.5 million voter contacts leading up to the june 5th election. we won by a bigger mar begin than we did in 2010. and that basis of support hasn't let up, that converted over to mitt romney, it got inspired
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when paul ryan was added to the ticket. but most importantly, the day after mitt romney had that impressive first debate in denver, we saw the phone lines lit up, we saw volunteers coming in droves and the numbers going up for mitt romney. i think momentum is clearly on the romney/ryan campaign side of things. >> let's dig in on that. one thing, governor walker. wisconsin unemployment rate is 7.3%. you've done such a good job, you're way below the national rate. in states that have lower unemployment than the national amp, does that help president obama? >> no, because voters are smart. i don't buy that others in the media have that cynicism that somehow voters conditions make that connection. you look at ohio, virginia, what we've done in wisconsin, it
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didn't turn around until the last two years, less than two years. and it turned around because republican governors came into those states, got the economy improving again. think about how much better it could be if we put a republican governor, a former republican governor, in charge as our president. that's the clear difference. at the convention when i spoke, i mentioned that night at my speech that if you compare all the states in america with the ones led by republicans compared to those led by democrats, the unemployment rate in republican led students was one point lower than those led by democrats. and voters understand that.was than those led by democrats. and voters understand that. >> is the hurricane having any impact on on the presidential election some there's been lots of questions does it help the president, does it hurt the president. from the national perspective, you're outside this region, do you think it has any impact at all? >> i think it's fairly neutral. i think as americans, we expect
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that on monday and tuesday and since then that we've set aside partisan politics and really focused on making sure first and foremost we send our prayers and thoughts out to everybody on the east coast and then i think it was appropriate for mitt romney for example had a rally scheduled, he canceled that. on tuesday, my wife was with ann romney in green bay and paul ryan was in lacrosse collects relief items. i did a phone bank for the red cross. the president was here today. mitt romney will be in wisconsin state fair park tomorrow. i think it just picked up again. but as americans, we expect our leaders to set up at times of crisis. i don't see it having a major impact and on a personal a note, we do continue to send our support out there aside from politics, we've sent about 750 people up, technical folks who can help out restoring power and telecommunications. so we'll continue to send more
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up in wisconsin because we want to help our friends on the east coast. >> let's talk horse race politics. you are one powerful figure. it's not enough that you won in 2010. but you had to win the recall and you actually did it better than the first time. you have a powerful organization. i guess what i'm asking is, can your powerful organization carry this thing for mitt romney? are all your offices intact, are all the lists and the people in order? because the obama people say they have a better ground game. what's your response? >> the obama team was out organizing for america, every national union leader, the obama team itself was out in full force against me if months if not more than a year. and we worn as you mentioned by a bigger margin than we can did in the 2010 election. i said all along that mitt romney can win. itched it back? june.
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he can win. it's ultimately got to stand for reformer. he showed us in the debate. he's made the compelling argument that he's the guy. the only guy in this race that can get the job done. we did it in a state where overwhelmingly the los angeles lay ch legislature is controlled by democrats. >> to me, you tell me you're the professional, but to me,angeles legislature is controlled by democrats. >> to me, you tell me you're the professional, but to me, it's economic growth and jobs on the one hand r, and the idea that he'll cross over the aisle and do some business in washington that will avoid bankruptcy and grow the economy. does that message resonate and work for you in wisconsin? >> i think it does and a good number of the so-called independent swing voters who i had to have to win by nearly seven points, a bigger margin than we did two years before, are the same types of voters who
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look at the reforms that mitt romney put in place, you look at the fact that he inherited a state with a budget deficit. did it without massive tax increases. in a way that helped the people of the state create more jobs. he did it with overwhelmingly in a state where democrats controlled the legislature. he brought people together. he can do exactly what the president promised he would do four years ago and has failed to do on the economy and bringing people together. mitt romney can do it. he's done it in the private sector and as a chief executive at the state level. he can do it for america. and i think in wisconsin, iowa, ohio, we respect that and we want that from our leader. >> and one last quick one. i'm not going to ask you about ohio. everybody does and i'm not. i want to though about iowa. rasmussen likely voters today. romney 49, obama 48. i don't think the republicans have carried iowa since 1492. can you actually win in iowa?
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this could be huge. >> i think so. i just -- on a person a note, i was born in colorado springs, i lived in iowa until i was in third grade and spent the rest of my life in the great state of wisconsin. i lived in now 00 third of all the battleground states in america. and each of those states, we saw two weeks ago just outside of denver, new jersey crowds for romney and iowa. the people who appreciate mid western roots. and we're definitely seeing that kind of support building in the state of wisconsin. the key will be voter turnout. that's why i was at victory centers today and ild be there all the way through tuesday all across our great state. >> governor scott walker, as always, thank you very much for your time. we know you're a busy fellow. folks, you can watch complete coverage of the presidential election right here on cnbc tuesday beginning at 5:00 p.m. but still ahead on this special edition of the "kudlow report," is mayor bloomberg playing politics with hurricane sandy?
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michelle and i will ask america's mayor, rudy giuliani, what's this all about. plus a big batch of economic data that sends stocks soaring today. >> this special edition of the c "kudlow report" is coming right back. tomorrow the moment of truth. the jobs report. is america heading in the right direction? days before the election, the number that matters most. be here when the jobs report is released tomorrow 8:30 eastern in "squawk box" on cnbc. ♪ [ engine revs ] ♪ ♪ [ male announcer ] the mercedes-benz winter event is back, with the perfect vehicle that's just right for you,
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finally good news. stocks rallied. the dow added 136 points. . we had jobless claims, productivity, ism index, construction spending, consumer confidence. all sparked a strong rally on the street. so here now, jack fer rouge i don't know, john silvia. i want to get your take on this sandy factor and the stock market. >> i think sandy is a temporary story, but the way i think christie and other governors and mayors really pitched in suggests that we'll get through this fairly quickly and there will be serious commitments in terms of infrastructure and improvements. and i'll reemphasize your point.
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chinese purchasing survey was a little improved and you're right, if the purchasing manager survey in the u.s. is a little better as was consumer confidence. >> jack, what do you think, is sandy a big driver for stocks or is it the coming election and the possible outcome? >> i think it's one that you have a lot of underinvested what i call nonbelievers. i think we're entering the period of chasing returns. first of november i think we started since '09 where it's been up. which is indicative of what the next couple of months will bring. having said that, sandy will produce jobs. the question is will sandy produce more jobs than president obama did over the course of the last few years. and as far as the numbers, let's keep this in mind. i'm 5'5". when i'm with my mop and my sisters who are 4'11", i'm a giant. but when i'm around my friends who are 6-feet, reality sets in. so these nudges are not great. >> this could be too much information. >> i know.
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you're saying the numbers are good, but not -- >> that's exactly right. when you're starving, even a crumb looks like a steak. we need a few months of solid growth. we need pro-growth -- >> but if romney wins or obama wins, which affects the stock more? >> it's a buy/buy scenario. >> i read in the notes that you position it's a rally if romney wins and a slight gain if obama wins. >> exactly right. corporate america leaner, meaner, healthier than ever before. making $105 a share. even if it were to come off a little bit, the multiple is an indictment on the lack of pro-growth policies.
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you'll get maybe 15 multiple if you get an obama election. romney, look for a 20 multiple. >> okay. john, i gather you're not worried about the effects of hurricane sandy. you're saying between the fourth quarter and first quarter, we will get back whatever we lost and then maybe some. >> yeah, i think so p. >> we're talking 2%, 2.5%. destroying bridges doesn't create jobs. >> i think we'd all agree when i look into the tone of the discussion, we're talking about moderate growth. 1.5% to 2% growth. we're really not talking about back to 3% to 4% growth. and i would say we really need to resolve these uncertainties about affordable care health care, we need to -- dodd-frank, the bush tax cuts. a lot of policy uncertainty
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whether that needs to be resolved before we move the economy forward.uncertaintywheto be resolved before we move the economy forward. >> i want to ask you about the last jobs number. i think the consensus is somewhere around 125,000 jobs. are you in the consensus or do you take the over or under? >> we're going 96,000 based upon the numbers that we've seen so far. and we think the unemployment rate stays pretty much as it is. the problem here is there is a strong seasonal pattern where the unemployment rate the last in two years has consistently gone down from august through november. >> 96,000 would be awful. >> 120,000 is pathetic at this point in the economic recovery. >> and if the household survey doesn't pan out, if you get a reversal, what did you have, both the 900,000 in last month's
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household survey, that was a weird number. probably seasonal adjustment with teachers and whatnot. if you get a reversal, what i'm saying is might the unemployment rate go from 7.8% back to, i don't know, 8%, 8.1%, 8.2%? >> absolutely that's in the ballpark because we have a sense that it's a sampling problem. very small sample. volatile numbers in the household survey. and when you look at what we saw last month, a lot of part-time, a lot of self-employed. we could easily see those adjustments, larry. >> what is built into the market tomorrow? how are you playing it? >> i don't know if the number is anywhere near as important as what happens tuesday. regardless of how that number comes out, unless it's a complete aberration one way or the other and it really affects the market, i think everything has been priced in.
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the fact is everyone is holding their breath. and regardless of how things come out on tuesday, more than likely we see the market creep a little higher. but the real question is whether we get real cooperation and leadership. and this is the first week and i think even republicans will say this that we have seen real leadership. and hopefully that will keep up. >> took a crisis to make it happen. thank you, guys. coming up, 4.5 million people remain in the dark. rudy giuliani will join us, tell us whether things could have been done better. plus andrew cuomo shoots a stern warn to go ying to utility comp. customer erin swenson bought from us online today.
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specifically the long island power authority has -- lipa -- has had a very poor track record in just this area o restoring power. and we're going to ask the chairman of the pfc to specifically monitor l will ipa to make sure the power is coming on. >> that was new york governor andrew cuomo targeting utility companies from the start of hurricane sandy. >> utilities work for the people of this state. and the state is the regulator to make sure they're performing their services adequately and
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responsibly. i believe how they prepared for this storm and how they repair after the storm is indicative of how well they're performing for the people of this state. so i fully intend to hold them accountable and i've informed them as such. >> we're joined now by clark, electric power research institute for an update. qular clark, good to have you here. you're an expert on the power infrastructure that we have. so many people are frustrated. politicians are breathing down the necks of the utilities. why is it that we have colleagues here in damage that have no damage in their towns being told that they'll lose two weeks without power. does that make any sense to you? why is this happening? >> it's a complicated machine. you can't really speak to what the inter-decks are. there could be pieces of the system that are down and neighborhoodses which prevent power flowing are one area on
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another. it's an individual thing. it depends on how the system is configured, what the density of the population is, what kind of customers are involved. all that will all fall back together is a real open question. >> could it be better, though? i keep reading that the civil engineers society in country say the power infrastructure is very far behind when it comes to transmission lines, et cetera. why is it, why are we so far behind? is governor cuomo right to be critical or is he and other politicians part of the problem when it comes to the regulatory framework? >> he's right to be vinlg want. that's part of his job. >> but what's the problem? why are we so far behind? >> i'm not sure there's as much of a problem as is being stated. the infrastructure is aning a bit aging a bit, but there is the question of keeping electricity prices down. utilities would be happy to
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enhance and modernize the infrastructure, but the pressure from their own regulators sometimes keeps them from doing it. >> that is a key point. can i go there with you? that is such a total key point. you've got all these regulations. it is the opposite, the total opposite of free market economi economics. and one of the functions of the utility is to provide shareholders with a decent rate of return which means you can make the infrastructure changes that you can't. you're a victim of government al control. it's the exact opposite of free market economics. >> it's a balance. no question about it. regulators are very sympathetic to utilities needs to enhance the infrastructure, but they have citizens breathing down their neck or want the rates cut or reduced. >> why didn't the markets set the rates? that's what i'm really asking. >> you can't do that with this
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asset. the thing that gets the juice from the generator on the customer, you can't have duplicate systems. and you would need duplicate systems if you really want that had kind of competition that you just inferred. >> that's what the distribution, but what about the purchase of the power itself. there are ways to deregulate this industry that would present who are competition, isn't there? >> no n. moin most cases there open market. there is competition. at the wholesale level. if you want competition at the resale level to some extent that exists in certain places. >> can i translate that for me? so if i run a big industrial corporation or big business, i can go in and buy power from different suppliers, but usually at the residential level, i'm stuck with the local utility, whatever it happens to be, right, that it? >> but who is acting on your behalf and playing in the same market? >> i'm just trying to explain to
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people the vernacular that you've been using. when you say the wholesale market, it's usually a big business that can buy or make choices but residents usually can't, right? >> this is an institutional buy and a retail sell. okay? it's like a bid an offer in the stock exchange. that's the way i look at it. tell me if i'm wrong. i think what michelle is saying is you have to pay money to buy the stuff wholesale, okay, but to sell it you got to get a decent rate of return. and all these state regulators are telling you you can't have this, you can't have that, you for the to hi got to hire lobbyists.'s not a won't do a market job because market capitalism would solve this. >> the regulators have to balance the two and that's not easy. >> regulators are right now living with constituents breathing down their necks and very angry. should you have seen if you watched local news here in new
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york, we see chuck schumer standing on the corner being screamed at by constituents. at some point do they look in the mirror and say we're part of the problem and realize that rates have to go higher? >> i'm proud of the industry. 61,000 workers on the street right now. 15,000 trucks which have come from all over the country as far as canada and california. i think we ought to really compliment the utilities for the job they're doing. >> believe me, i'm not criticizing the men, the workers, the women. i'm not criticizing that. i'm not even criticizing you. i'm criticizing this crazy system. michelle and i talked about this last evening. get these bottlenecks, you get the national emergencies, and in comes the infrastructure problem and you ask yourself doctor. and today a lot of angry new yorkers are asking themselves why.doctor. and today a lot of angry new yorkers are asking themselves why. >> the second night in a row
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where you for example say we should compliment the utility industry. our issue isn't with the industry. it's with the politicians who don't allow prices to go to places that would improve infrastructure and when everything fails, they blame the utilities. so it becomes a pumping bag when in fact you're probably not necessarily the problem. >> it's not a small price tag. you're talking about between $500 billion to $600 billion to bring it up to modern standards with digital equipment and controls and computational ability and the like. it's not easy to do that. >> i'm not going after the men and women doing the work. that was not my point. michelle is making a system he can institutional point. i don't blame them. i got a place in connecticut. we got the same problems up there. it's hot about the individuals. >> this business model isn't working. it's failing. clark, thanks so much for weighing in and we agree, the
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workers definitely need to be complimented. coming up, america's mayor rudy giuliani will tell us whether things could have been done better in the wake of hurricane sandy. when you take a closer look... ...at the best schools in the world... ...you see they all have something very interesting in common. they have teachers... ...with a deeper knowledge of their subjects. as a result, their students achieve at a higher level. let's develop more stars in education. let's invest in our teachers... ...so they can inspire our students.
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welcome back.
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let's get right to our special guest. we welcome america's mayor, former mayor of new york city, rudy giuliani. as you probably know, there is a story that today michael bloomberg on grounds of global warming has endorsed barack obama. do you think this has anything to do with getting fema money and paying for all of new york's infrastructure? it strikes me as an odd time for the mayor. doesn't he have anything better to do? >> well, i don't know. you have to ask mike why he wanted to do it on that basis. it seems that there are some other issues that are pretty darn big like what's going on in the middle east and disaster in the middle east, the disaster in libya, the disaster to our economy that this president has brought about. his inability to really set forth a plan for the next four years that makes any sense. and you want to talk about this
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particular issue that we're going through is absolutely just say no to any form of expansion of energy which is the reason why we're having such a tough time recovering. michelle just made the point before about this aging infrastructure that we have. we haven't rebuilt it not because we don't have the money to do it. we haven't rebuilt it because all these groups oppose every single thing you want to do. if you want to build a new generator, they oppose that. if you want to build new transition lines, they opposes that. god to bid you should built a new nuclear power plant. >> but that's what bloomy is saying. when he goes down this road of global warming, and he also mentioned cap and trade, he is saying we'll put limits on the volume of energy. all energy. including, you know, the new fracking centering for natural ga energy for natural gas. it's anti-growth. and new york city doesn't need anti-growth policies.
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>> we're always at the breaking point for energy. i belt ten new generators. i had to push to do it by the new york you power authority. this is not just true of new york, it's true all throughout america. we operate at the limit. some of that is economics because it costs money to buy that excess energy, but some of it is also that excess energy doesn't exist because we haven't built a new nuclear power plant in 30 years. we haven't expanded transmission lines. we haven't modernized. and a lot of that is because of i would call it not the environmentali environmentalists, the extreme environmentalists who oppose it and just block it completely. >> what do you think of the situation in new york city right now, how it's been hammed? and when you were mayor, was there and on the shelf plan in case you got hit like a huge hurricane? >> the city has had hurricane plans for 40 or 50 years. this has been an enormously intense storm, so i don't know if there's a good xwar scompari.
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but i think the emergency plan has worked pretty well. the length of time is a systemic problem that should be cured. and some of that is due to the fact that we don't have as much sources of energy as we should have. we should probably with 10%, 20% more. and the reality is that's been a long term on that on position to really redeveloping our infrastructure. >> that's the thing. i want to go there because we were talking about this in the last segment. regarding the role of big government, which regulates all the mta regs, con edison, all the infrastructure operations, it is the exact opposite of a free market and it seems to me at cries cease like this, the negative consequences come out. we don't have what we need because we don't clashlg what we need in a free market. >> that's absolutely true. the reality is the supply of our energy hasn't increased with the
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demand on our energy. and the really is then when you get hit like this and where you're operating at the breaking point, then it takes forever and ever to rebuild. also, a lot of this equipment, i'm not a complete expert on this, but i to know from my experience as mayor, a lot of this equipment is very old which the reason why it takes three, four, five days to bring it back. if you had modern equipment, you could bring it back in 12, 24 hours. and that's a failure of long term pot just inot just investmn opposition to doing what needs to be it done. >> i know you don't like to second guess or be critical, but if you were mayor of this city, would you be running the marathon or would you allow the city to host the marathon? >> 100%. i agree with that 100%. >> why? >> the city has to go on. >> it's stretched to its limits. >> this is what we have 35,000 size police department for. because we can do remarkable
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things. we can get hit very hard. i once had a tremendous snowstorm two days before the new year's eve celebration, they wanted to cancel new year's eve. i said no. they wanted to cancel it in 2000 because of a terrorist threat. i said we'll deal with the terrorist threat. they wanted to cancel the marathon in 2001 and i said the heck with that, we'll show new york city is the most resilient city in the world. >> so if you were still mayor, we would have had the halloween parade? >> i don't know about the parade, but we sure as heck would have had the marathon. i support the mayor in doing that. he's making the right decision. >> you gave a speech today or yesterday and you said in large capital letters new yorkers are resilient. and i said amen, god bless. i've been a new yorker for a very long time. and you also do praise mayor bloomberg's performance during this crisis. let's put his -- as one who is
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one of the greatest crisis mayors in the history of this country, at least that's my humble opinion, are you giving mike bloomberg high marks, are you not? >> i give him high marks on the whole handling including the decision to go forward with the marathon. i disagree with him on the obama endorsement. but that's a wholly separate matter. >> one other one coming with a ba back to some of the nuts and bolts. take a look at down up to. going to be a mess for a while.. take a look at down up to. going to be a mess for a while.. take a look at down up to. going to be a mess for a while. is there an issue of companies moving outside of new york city, going to dallas or houston or atlanta and has -- >> stamford god to bid. >> connecticut is just as big of a mess. but do they go out of town because the if silt f facilitie better? >> i don't think so. this is very rare.
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a natural disaster can hit you anywhere. so, no, you want to keep new york city vibrant, then you worry about taxes. that's the ongoing thing that businesses have to pay and the reason they start look outside of new york city is when they can get better deals outside of new york city where the tax level is much less. >> amen. >> that's the thing i would look at. you keep taxes low in new york city -- downtown manhattan has doubled in size since september 11th. i don't see that changing. >> great stuff. many, many thanks to america's mayor, rudy giuliani. we appreciate it. coming up, homeowners will not have to pay hurricane ded t deductibles for damage caused by the storm. what do you think, larry? >> i hate to say this, but there is no such thing as a free lunch. here we go again. why can't markets be allowed to work? >> because politicians won't let them. we'll discuss after this.
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call your advisor. visit ishares.com. ishares. yeah, ishares. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. this hurricane really has muddled things up when it comes to insurance regulations because noaa came up with a new
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definition. not a hurricane. wasn't a tropical storm. it was a post-tropical event or a super storm. brachbd new category. why is this a problem? because most insurance policies are based on definitions. if it's a hurricane, the deductible requires the owner pays a percentage of the damage to the home. if it's a tropical storm, you just get the flat deductible. usually cheaper. now some governors of some states have said we decided that our homeowners will pay the lower rate. they just decided by fiat. why? why do they get to do that? is it okay to violate free market economics? governor cuomo says this is a super storm, not a hurricane
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is -- >> it's a little worse are worse even than been described because we have to file and have have our rates approved and then we learn after the fact that they've been approved, they're ready for use, we have a situation like this where we're told you can't use them anyhow. so that creates a lot of sof uncertainty. >> is this a new category, are any policies written under this kind of event? >> yes, i think you did it set it up well because oftentimes hurricane deductibles are used to bind insurers to regulate their exposures. so they use hurricanes for the trigger of the use of those deductib deductibles. and regulators have said it wasn't really a hurricane, it was an extra tropical cyclonic event. >> whatever that is.
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but when we have a society built on rule of law, enforcement of private contracts and understandings of what outcomes are going to be, when all of a sudden the governor decides fcht iat, what does that do to future insurance rates and the future of the availability of insurance? >> those are excellent questions. of course when we have a situation like this where after thing have been approved and insurers have set their rates and have made their agreements and bar gibbs on the basis of the availability of these dedubltth ductables and then we return after the fact we won't have them, that has definite consequences for consumers and insurers in terms of insurers needing to look are these going to be veil. it doesn't appear as if they are and yet we set our premiums on the basis of them. >> and then the consumers get in cheap and create a moral hazard to go right back and build against the shore line without any power.
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you create a moral hazard. i got to get out of here. in the last couple of esegments quu know attacking insurance companies and utility companies. i don't hear anything constructive about that whatsoever. that is standard left wing big government politics. that's all it is. >> and here's the thing. most of the industries that we as americans are most dissatisfied with, they're the ones that have the most government enter strength. always. >> isn't in a funny. we said our peace. coming up, new york mayor, that's it, billionaire businessman michael bloomberg endorses president obama and, get this, he on the basis of climate change. really? my guess is he could be gunning for big government bucks. our political analysts will face off next. there are a lot of warning lights
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welcome back to this special edition of the kudl"kudlow rep." as we told you, michael bloomberg today endorses president obama. go figure. like he doesn't have anything better to do. here now karen finney, coal will you pleasist and kellyanne
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conway. what i love about this story is not the fact that boomloomberg other fish to fry, but the british weather service has just put out a report 16 years have passed without temperature increases at all. in fact it's now the same as the prior 16 years when people started worrying about it. the global warming thing is a hoax. it's a hoax, kellyanne. >> that may be why mayor bloomberg actually devoted most of the endorsement op-ed not on global warming and climate change. larry, if you look, he actually criticizes the president for failing to perform the issues america cares most about, he said the president has failed on deficit reduction and job creation, balancing the budget. that's what americans carry about. then as if the endorsement itself is not gratuitous, literally half of his city is either in the dark or under water, he adds to it the
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marriage equality and the right of women to choose. i think it was totally unnecessary. >> that's why i'm a little auspicious a spish suspicious of help wanting fema money. this is in the bloomberg endorsement. he says there is devoted little time and effort to developing as a company a lives centrists. it's doomed any real progress on guns, immigration, tax reform, job creation and deficit reduction and he has a divisive populous agenda. he's talking about barack obama. now, i'll admit, that ain't much of an endorsement. you have to agree with me on that. >> i totally agree. when i read it, i was like, hey, where is the endorsement part? but here's the central part, guys, that he does make and we can't escape.
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part of of the point that he makes on romney's positions with climate change is the not just climate change itself, but where he was and then where he is now. this idea that romney has since put politics ahead of this good science. and that's where kellyanne references -- >> he did that -- >> hold on. his point is the mitt romney that he knew all those years ago is not the right ring guy running for president now. that's the poink he makes. point he makes. >> and that is what making this a close race because mitt has moved a little to the center. but another one i can't let go by. president obama now wants a secretary of business. ap-mitt romney's response is, hey, listen, i'm doing it. i got 25 seconds. i know how to get business. the other guy wants a secretary of business. this is the weirdest darn thing i've ever heard. >> well, remember, bloomberg
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fancies himself as a presidential candidate not once but several times. we don't need another government agency. >> indeed we don't. you have that totally right. and you did it right in the middle of the time frame. >> i agree. how about that? >> terrific. you're very honest tonight. that's it for tonight's show. thanks for watching. larry kudlow. president obama: there's just no quit in america...
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and you're seeing that right now. over five million new jobs. exports up forty one percent. home values... rising. our auto industry... back. and our heroes are coming home. we're not there yet, but we've made real progress and the... last thing we should do is turn back now. here's my plan for the next four years: making education and training a national priority; building on our manufacturing boom; boosting american-made energy; reducing the deficits responsibly by cutting where... we can, and asking the wealthy to pay a little more. and ending the war in afghanistan, so we can... do some nation-building here at home. that's the right path. so read my plan, compare it to governor romney's... and decide which is better for you. it's an honor to be your president... and i'm asking for your vote... so together, we can keep moving america forward.

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